The tax credit has NOTHING to do with your refund. EVERYBODY has to pay, most of us pay with weekly withholding. Those that pay too much get a refund, it you didn't pay enough, then you have to pay. The tax credit reduces what you owe BEFORE any payments have been made either through withholding or an April 15 check.the only way a tax credit works, is if you have to pay instead of a tax refund, and if you have to pay,you only get what is owed up to $7,500,you don't get the leftover amount
This is true.the oriinal owner was given the tax credit, there is no tax credit available on a used volt
This is misleading. You could have a refund owed you and still get the $7500 or a portion.the only way a tax credit works, is if you have to pay instead of a tax refund, and if you have to pay,you only get what is owed up to $7,500,you don't get the leftover amount
Actually, this isn't even close to true. Almost half of American households pay ZERO Federal Income Tax....EVERYBODY has to pay, most of us pay with weekly withholding...
+1. That's why you can buy a $40K+ 3 year old car for $13K.No. And part of the reason why you can buy that Volt for only $13,000 is because the original owner already pocketed the $7,500 credit when he bought the car. The used car price is discounted by the credit.
I guess I should have phrased it. If you work and receive an income, you owe taxes.Actually, this isn't even close to true. Almost half of American households pay ZERO Federal Income Tax.
This means they can not benefit from the tax credit at all (granted many of them also can't afford a Volt either way). In addition, many households have to pay some fed income tax but less than $7500.
Yes, you will pay FICA. But because of personal exemptions, deductions and Earned Income Tax Credit, a married couple with kids can earn something like $30-35K and have zero Federal Income Tax liability. That is the important number for the EV tax credit.I guess I should have phrased it. If you work and receive an income, you owe taxes.
At this point, we know of no plans to eliminate the credit early, nor do we have reason to think such concerns aren't credible.So I'm wondering if the new Administration is going to continue to support the tax credit. And I'm hoping I can ask a simple question like that without starting a political flame war.